French Economic Activity in October Disappoints, Paris Stock Exchange Declines – Latest News and Updates

2023-11-06 17:55:09

Paris (AFP) – The Paris Stock Exchange closed down 0.48% on Monday, disappointed by the deterioration of economic activity in France for the month of October according to the PMI index.

Published on: 06/11/2023 – 18:55Modified on: 06/11/2023 – 18:53

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The star CAC 40 index dropped 33.77 points to finish at 7,013.73 points. Last week, the Paris Stock Exchange rose 3.71%, achieving its best weekly performance since the rebound after the crisis in American regional banks at the end of March.

“The CAC opened higher this morning, in line with the Asian markets, but it quickly returned to close to zero then into negative territory” after the publication of the PMIs signaling that “activity is slowing down more than we expected.” expected”, comments Denis Khamhou, diversified manager at Myria AM.

At 44.6, the indicator for France has been revised down significantly compared to the first estimate (45.3). A number below 50 signals a contraction in economic activity.

In September, this indicator stood at 44.1, its lowest level in 34 months, and it therefore “recovered only very slightly” in October, noted the S&P Global firm and the Hamburg Commercial Bank (HCOB), in a press release.

Furthermore, “this week we are awaiting the intervention of Jerome Powell”, the president of the Federal Reserve (Fed), in the hope of clues on the future rate policy of the American central bank.

Jerome Powell will speak at an IMF debate on Thursday.

This intervention will take place after the Fed meeting last week, after which the monetary institution, as expected, left its key rates unchanged for the second time in a row.

Vivendi closes lower

The French media giant Vivendi closed down 1.41% at 8.54 euros after announcing on Sunday its intention to “use all legal means at its disposal” to “contest” the decision of the board of directors. administration of Telecom Italia – of which he is the largest shareholder – to sell its fixed network to the American investment fund KKR.

Orpea ends at 1 euro

The Orpea retirement home group lost 4.95% to 1 euro after announcing that it was targeting operating profit (Ebitda) “at the bottom of the range” (705 to 750 million euros) announced in June and postponed one year, from 2025 to 2026, its medium-term financial objective. Year-over-year, its third quarter turnover increased by more than 10%.

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